Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.99% was delivered by the fund for the first quarter of 2021, trailing its Russell 2000 Growth benchmark that delivered a 4.87% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Polen U.S. Small Company Growth Fund, in its Q1 2021 investor letter, mentioned Fox Factory Holding Corp. (NASDAQ: FOXF), and shared their insights on the company. Fox Factory Holding Corp. is a Braselton, Georgia-based suspension products manufacturer that currently has a $6.4 billion market capitalization. Since the beginning of the year, FOXF delivered a 45.98% return, extending its 12-month gains to 128.49%. As of May 21, 2021, the stock closed at $154.32 per share.
Here is what Polen U.S. Small Company Growth Fund has to say about Fox Factory Holding Corp. in its Q1 2021 investor letter:
“Fox Factory was another top contributor during the quarter. The company designs, manufactures, and sells high-performance products for bicycles and on-road and off-road vehicles. The company reported its second consecutive quarter of record revenues and is guiding towards another strong year of +20% revenue growth. The company achieved this growth despite key U.S. manufacturing facilities suffering from COVID-19 shutdowns. Their ability to flex production capacity allowed the company to meet unprecedented and volatile demand from original equipment manufacturers (OEMs) and a wider customer base. Management noted that the company continues to expand its relationships with OEMs, and their order backlog already runs into 2022. However, management reported that certain bike and automotive components are becoming difficult to source as global supply chains remain stretched, and they remain focused on improved factory utilization and well-managed inventory.”
Our calculations show that Fox Factory Holding Corp. (NASDAQ: FOXF) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Fox Factory Holding Corp. was in 14 hedge fund portfolios, compared to 15 funds in the fourth quarter of 2020. FOXF delivered an 11.07% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.